American Airlines CEO Robert Isom brought in a total of $31.4 million last year, according to a regulatory filing released Thursday.
Isom’s pay package for 2023 was made up of three components: a $16.5 million direct salary, a one-time $11 million bonus that was reported in September and a one-time $3.9 million annual bonus that was paid in 2023 but earned in 2022.
Broken down further, Isom, 60, makes $1.3 million in a base salary, and $15.2 million in incentives and other compensation, totaling $16.5 million. Isom’s $11 million bump in September — a $2.75 million bonus and $8.25 million worth of restricted stock grants was aimed at incentivizing the CEO to keep the company performing during his tenure. He stepped into the job in March 2022.
The $3.9 million was part of a bonus program “made to incentivize performance beginning at the point in time when the most significant impacts of the pandemic had finally concluded,” hence the delay in the payout.
Isom’s predecessor Doug Parker, made $7.24 million in his final full year as CEO in 2021 and $10.6 million in 2022.
Isom’s predecessor Doug Parker, made $7.24 million in his final full year as CEO in 2021 and $10.6 million in 2022.
The majority of Isom’s $31.4 million is based on American’s performance. In hindsight, 10% of Isom’s pay is guaranteed and 90% is investment-based. Nearly 74% of the compensation is stock, which would be earned over time, according to American.
Other executives at American also made out better in 2023. Vasu Raja, executive vice president and chief commercial officer made $12.2 million, inclusive of salary, bonuses and stocks. Steve Johnson, vice chair chief strategy officer at American made $10.2 million.
Compensation for airline executives dipped in 2022, so 2023 was a change in pace as the industry climbed out of a pandemic. Isom’s total compensation fell slightly to $4.89 million in 2022.
United Airlines CEO Scott Kirby made $18.5 million in 2023, according to a regulatory filing this month. Southwest Airlines CEO Bob Jordan made $9 million last year in total compensation, following the airline’s operational meltdown that plagued passengers over the holidays. Jordan made $700,000 in base salary, bonuses worth about $4 million and stock awards of $4.1 million. Delta’s Ed Bastian made $9.3 million in 2022 and his 2023 compensation has not been released.